Customer Issue
Customer with 250+ label suppliers in North America
- Poor quality and delivery metrics
- No visibility of annual purchase value (APV) and demand
- Rising costs across portfolio
- Complexity cost: Excessive part numbers and specifications to manage
The AWT Solution
Commodity Management Contract – Appointed “Integrated Label Supplier Manager”
- Assigned all commodity POs
- 100% plant audits for all customer facilities
- Re-source or in-source labels from poor suppliers
- Part review and consolidation
- Spec review and consolidation to a single master spec
- Value engineering – material and design optimization
Customer Benefits
Cost Savings
- 8% average annual savings for over 10 years
- $2.2 million, 10 year cumulative
Productivity Gains
- Eliminated >200 suppliers oversight
- Spec consolidation from 25 to 1
- Quality improvement >60%
- Quality system compliance with suppliers meeting IATF or ISO requirements
